Puma has secured around $700 million in loans and credit lines of new financing as it continues to implement a turnaround effort.
The German company confirmed on Thursday that the loan and credit lines have a maturity of up to 2 years and would be used as a cash infusion and “increasing overall flexibility and headroom.”
According to Puma, 500 million euros ($585 million) will come in the form of a bridge loan while the 108 million euros ($126 million) will be supplied as an additional credit line that will bolster an existing revolving credit facility valued at 1.2 billion euros ($1.4 billion).
Puma also noted that the latest financing was underwritten by Santander Corporate & Investment Banking, which is based in Spain.
“Even though our existing Revolving Credit Line and the promissory notes are staying continuously available, today’s announcement will add more financial flexibility as we are working to finalize our long-term funding structure,” Markus Neubrand, Puma’s chief financial officer said in a statement. “The fact that Bank partners have further increased their exposure and business, underscores the confidence in our future business model and strategic direction. This will allow us to execute on our strategic priorities and our ambition to establish Puma as a Top 3 sports brand globally.”
The financing arrives as continued speculation of a potential sale of Puma have persists, with shares more recently surging on Frankfurt Stock Exchange in late November as reports of Anta Sports and Li Ning Co. showing separate interest in acquiring the company. Asics, Adidas, Authentic Brands Group and private equity firm CVC have all been mentioned in talks as suitors for Puma.
But the momentary boost was one of just few bright spots for Puma, which has seen share dip more than half for the year as new CEO Arthur Hoeld looks to revitalize the brand by 2027. The company said in July that it would take a full-year loss as part of a revised financial outlook, with a pair of announced job cuts impacting 1,400 positions.
Meanwhile, a proposed takeover of the brand could be delayed as the company’s largest shareholder would likely be reluctant to approve a sale under the current valuation. The Pinault family owns 29 percent of Puma through its Artémis holding company and, for now, has shown confidence in Hoeld’s reset of the company.
Puma’s shares were down 3 percent as trading closed on Friday in Frankfurt.
